Many organisations have eagerly embraced SaaS solutions, entrusting the responsibility of security and software robustness entirely to the SaaS provider or the cloud services provider (CSP). Unfortunately, this assumption can lead to significant oversights.
When SaaS applications are adopted directly by business owners without consulting the IT or GRC departments, critical security measures and risk mitigation strategies often fall by the wayside. Consequently, organisations find themselves vulnerable to data breaches, system failures, or other unforeseen challenges. Such breaches feature in the news feeds almost daily.
In light of these risks, it’s essential to address some key questions about migrating business-critical applications to the cloud and the role of software escrow services in safeguarding these vital assets.
1. Does Escrow apply to SaaS?
Absolutely. In fact, the need for escrow is even more pronounced in the realm of SaaS, where the dependency extends beyond the software supplier to include the cloud service provider which puts at risk both the software and the data it operates on.
2. What is SaaS Escrow?
SaaS Escrow involves securely storing access credentials, application data, source code, and other critical materials with a trusted third party, a professional escrow service. These materials can be accessed and utilized in the event of a SaaS provider failure, ensuring continuity of operations for your business.
3. Is the SaaS Vendor Responsible for my Application and Data?
While SaaS vendors play a role in providing the service, the ultimate responsibility for data security and service resilience lies with the customer. A shared responsibility model dictates that while the CSP manages the security of the cloud infrastructure, the subscriber (your business) is responsible for securing their data within that environment.
4. Is SaaS Escrow Necessary for Large SaaS Vendors?
Yes, indeed. While larger vendors may appear more stable, they are not immune to disruptions. Indeed it is not unheard of for the biggest businesses on Earth to suffer disruptions, think: META, Amazon or X. SaaS escrow mitigates risks across the cloud software supply chain, providing a safety net in the face of vendor insolvency, discontinued support, or cybersecurity threats.
5. How does SaaS Escrow Fit into our Disaster Recovery?
While a Disaster Recovery (DR) plan is essential, it does not cover all scenarios, particularly those involving SaaS provider insolvency. Escrow services complement DR plans by providing a solution to mitigate supply chain risk and ensure business continuity in the face of unforeseen circumstances.
According to a report published in 2022 by STRATEGEM Market Insights, the Compound Annual Growth Rate for SaaS Escrow is projected to be 11.9% from 2021 to 2030, with its value expected to rise from US$ 577.3 million in 2021 to US$ 1,540.9 million by 2030. In the Middle East & Africa region, the market value for Software and Source Code Escrow Services is analysed and forecasted by country and type. South Africa is expected to see a CAGR of 12.2%, with market values ranging from US$ 237.2 million to US$ 595.0 million. For SaaS Escrow specifically, the CAGR is also 11.9%, with market values ranging from US$ 627.2 million to US$ 1,540.9 million.
Increase Your Business Resilience with SaaS Escrow Today
In conclusion, SaaS Escrow is not just a safety measure; it’s a strategic imperative for businesses operating in the cloud. By partnering with a reliable escrow provider, organisations can fortify their resilience, protect their critical assets, and ensure uninterrupted operations in an increasingly digital world.
